**EXHIBIT 99.2**

**PURCHASE AND SALES AGREEMENT**

THIS AGREEMENT, dated as of June 1, 2002, is between BC&D Oil and Gas Corporation ("Seller"), with offices at 2225
NW County road, Hobbs, NM 88240 and Rocky Mountain Energy Corporation ("Buyer") with offices at 333 North Sam
Houston Parkway East, Suite 910, Houston, Texas 77060.

Subject to the terms and conditions of this Purchase and Sales Agreement, Seller desires to sell, assign, transfer and convey
to Buyer and Buyer desires to purchase from Seller all of Seller's right, title and interest in, to and under or derived from
the oil and gas leases, oil, gas and mineral leases and other interests therein referred to in Exhibit "A", attached hereto and
made a part hereof for all purposes, insofar and only insofar as said Leases apply to the lands, depths, formations, wellbore
rights and/or other rights specified on Exhibit "A" together with identical interests in and to all property and rights incident
thereto, including without limitation, all materials, equipment, personal property and fixtures located thereon or used in
connection therewith (the "Equipment") as listed on Exhibit "B" and all of Seller's rights in, to and under all agreements,
leases, permits, rights-of-way, easements, licenses, options and orders in any way relating thereto as of 7:00 A.M. local
time, June 1, 2002 (the "Effective Time"), all of the foregoing properties, rights and interests being hereinafter sometimes
called the "Interests".

THEREFORE, In consideration of the above recitals and of the covenants and agreements herein contained, Seller and
Buyer agree as follows:

1. SALE AND PURCHASE: Subject to and upon all of the terms and conditions hereinafter set forth, Seller shall sell,
transfer, assign, convey and deliver unto Buyer all of Seller's right, title and interest in and to the Interests, and Buyer shall
purchase, receive, pay for and accept the Interests from Seller, as of the Effective Time.

2. SALE PRICE: The sale price for the Interests shall be the approximate amount of Four Million Five Hundred Thousand
and No/100 Dollars ($4,500,000), subject only to any applicable price adjustment as provided for herein below. At Closing
Buyer shall pay and deliver to Seller the total sale price after any applicable price adjustment as provided for herein below
as follow, to wit:

(a) The Buyer shall deliver the sum of  Two Million Five Hundred and No/100 Dollars ($2,500,000) in cash,

(b) An amount of shares of the common stock of Buyer which will equal the sum of Two Million and No/100 Dollars
($2,000,000) based upon the closing price of such stock at June 10, 2002.  These shares shall be Regulation 144 shares but
will be subject to "piggy-back' registration rights.  Further, an agreement to file a "fairness hearing" under ss701 shall be
made to free the shares.

(c) Seller and Buyer agree to the additional contingent payments as calculated in Exhibit "C" to be earned by Seller.    The
payment shall be made on a basis of production levels achieved and is additional consideration for the purchase of the
assets if the assets perform as anticipated.

(d) The Purchase Price shall be adjusted as follows (to the extent such items are known or can be reasonably estimated at
Closing), and the resulting amount (the "Closing Amount") shall be paid to Seller.

(i) The Purchase Price shall be decreased by the following amounts:

x. The amount of revenues actually received by Seller for oil, gas, condensate, natural gas liquids and other petroleum
product sales attributable to production from the Subject Properties from and after the Effective Date (it being agreed that
all oil which was produced from the Subject Properties prior to the Effective Date and which was, on the Effective Date,
stored in tanks located on the Subject Lease, or located elsewhere but used by Seller to store oil produced from the Subject
Properties prior to delivery to oil Buyer, and above pipeline connections shall be deemed to have been produced before the
Effective Date);

(ii) The Purchase Price shall be increased by the following amounts:

x. The amount of all reasonable costs and expenses incurred and paid by Seller in connection with the ownership or
operation of the Assets and attributable to the period from and after the Effective Date, including without limitation any
lease operating expenses and customary and reasonable overhead charges;

y. An amount equal to all prepaid expenses attributable to the Assets paid by Seller and attributable to the period from and
after the Effective Date, including without limitation prepaid ad valorem, property, production and other taxes and
payments for insurance coverage accruing to the benefit of Buyer subsequent to the Effective Date.

3. INFORMATION AND ACCESS: Seller shall make a good-faith effort to give Buyer and Buyer's authorized
representatives, at any reasonable time(s) before Closing, (i) physical access to the wells and other Equipment included in
the Interests, at Buyer's sole risk, cost and expense, for the purpose of inspecting the same, conducting witnessed tests of
production from the wells, and (ii) access to all production, engineering and other technical data and records, and to all
contract, land and lease records, to the extent such data and records are in Seller's possession and relate to the Interests;
provided, however, Seller shall have no obligation to provide Buyer such access to any data or information which Seller
considers proprietary or confidential to it or which access Seller cannot legally provide Buyer because of third-party
restrictions on Seller.

4. TITLE DEFECTS: For the purpose of this Agreement, a "Title Defect" shall mean a material deficiency in one (or more)
of the following respects, to-wit:

(a) Seller's title at the Effective Time, as to one or more properties, is subject to an outstanding mortgage, deed of trust, lien
or encumbrance or other adverse claim which would induce a pipeline Buyer to suspend payment of proceeds as to Seller's
interest or require the furnishing of security or indemnity. Evidence that Seller is currently receiving its full share of
proceeds from a pipeline Buyer or third-party operator (not under a 100% or other division order requiring Seller to further
distribute proceeds to third parties) for the Interests shall be considered a presumption that no defect exists with respect to
this interest;

(b) Seller owns less than the net revenue interest described on Exhibit "A" or more than the working interest described on
Exhibit "A" without a corresponding increase in net revenue interest;

(c) Seller's rights and interests are subject to being reduced by virtue of the exercise by a third party of reversionary,
back-in or other similar right not reflected on Exhibit "A"; and,

(d) Seller Is In default under some material provision of a lease, farmout agreement or agreement affecting the Interests.

5. SALE PRICE ADJUSTMENTS: Buyer may, by delivery of written notice to Seller of the existence of a Title Defect,
request reduction of the sale price for the property affected. Seller may request an increase in the sale price of a property by
delivery to Buyer of written notice that the net revenue interest actually owned by Seller therein is greater than that shown
on Exhibit "A".

Any such notice by Buyer or Seller shall include appropriate evidence to substantiate its position and shall be delivered to
the other party on or before twenty (20) days after closing. In the event any such notice is not timely delivered, the claimant
shall thereafter have no right to claim a Title Defect or different revenue interest.

Upon timely delivery of a notice either by Buyer of a Title Defect or by Seller of an increase or decrease in net revenue
interest, Buyer and Seller shall meet and use their best efforts to agree on the validity of the claim and the amount of any
required price adjustment based on the following formula:

(i) If both the Working Interest and the Net Revenue Interest for any property are incorrectly stated on Exhibit "A", but the
ratio of Net Revenue Interest to Working Interest is correctly stated, then the adjustment to the Purchase Price shall be the
product of the value listed on Exhibit "A" multiplied by a fraction, the numerator of which is the Net Revenue Interest
increase or decrease and the denominator of which is the Net Revenue Interest listed on Exhibit "A".

(ii) If either the Working Interest or the Net Revenue Interest for any property is incorrectly stated on Exhibit "A" and the
ratio of Net Revenue Interest to Working Interest is incorrectly stated, then the Purchase Price shall be adjusted as follows:
Buyer shall recalculate the value of the property affected using precisely the same economic model, formula and
assumptions used by it in calculating its values shown on Exhibit "A" but inserting the correct Working Interest and Net
Revenue Interest percentage for the incorrect percentages.  The difference between the recalculated value and the value
shown on Exhibit "A" shall be the dollar value of the adjustment to the Purchase Price.

The additional payment due conditioned upon production increases per section 2(c) shall be considered an upward
adjustment to the purchase price as and if earned.

6. SELLER REPRESENTATIONS AND WARRANTIES: Seller represents and warrants to that as of the Effective Date
and the date Seller executes this Agreement that to the best of Seller's knowledge:

(a) Is duly qualified to carry on its business in the state where the Interests are located, and has all the requisite power and
authority to enter into and perform this Agreement.

(b) It has taken all necessary actions pursuant to Its Articles of Incorporation, By-laws and other governing documents to
fully authorize it to consummate the transaction contemplated by this Agreement.

(c) This Agreement and the consummation of the transactions contemplated by this Agreement will not violate, constitute a
default under, or be in conflict with (i) any provision of Seller's Articles of Incorporation or Bylaws, (ii) any material
contract, agreement or instrument to which Seller is a party or by which Seller is bound or, (iii) any judgment, decree,
order, statute, rule, permit or regulation applicable to Seller or the Assets.

(d) The execution, delivery and performance of this Agreement and the transactions contemplated by this Agreement have
been duly and validly authorized by all necessary corporate action on the part of Seller.  This Agreement has been duly
executed and delivered on behalf of Seller and at Closing all documents and instruments required hereunder to be executed
and delivered by Seller shall have been duly executed and delivered.  This Agreement and such documents and instruments
will constitute legal, valid and binding obligations of Seller, enforceable against Seller in accordance with their terms,
subject, however, to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the rights
and remedies of creditors, and to general principles of equity.

(e) SELLER MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE WARRANTY OF
MERCHANTABILITY AND THE IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE,
REGARDING THE SUBJECT PROPERTIES, FIXTURES, FACILITIES, EQUIPMENT, IMPROVEMENTS,
MATERIALS AND OTHER PERSONAL PROPERTY LOCATED ON OR INCLUDED IN THE ASSETS, AND THE
SAME ARE TO BE SOLD ON AN "AS IS, WHERE IS" BASIS AND CONDITION.

(f) To the best of Seller's knowledge, all ad valorem, property and similar taxes and assessments based on or measured by
the ownership of the Assets or the production of hydrocarbons or the receipt of proceeds there from on account of the
Assets for all years prior to 2001 have been properly paid.

(g) To the best of Seller's knowledge , there are no bankruptcy, reorganization or arrangement proceedings pending, being
contemplated by or to the best of Seller's knowledge threatened against Seller.

(h) Except as expressly set forth in attached Schedule "B", no suit, action or other proceeding (including, without
limitation, tax, environmental or development demands proceedings) is pending, or to the best of Seller's knowledge
threatened, which might result in impairment or loss of title to any of the Assets or the value thereof.  Seller shall promptly
notify Buyer of any such proceeding which may arise or be threatened prior to Closing hereunder.

(i) To the best of Seller's knowledge, there exists no adverse claim or claimed default (or any event which, with the giving
of notice or the passage of time, or both, would constitute a default) under (i) any of the Subject Agreements or (ii) any
order, writ, injunction or decree of any court, commission or administrative agency affecting any of the Assets.  Seller shall
promptly notify Buyer of any notice hereafter received by Seller of any such claim or default and the occurrence of any
such event of which Seller becomes aware prior to Closing.

(j) To the best of Seller's knowledge, there are no unpaid bills or past due charges for any labor or materials incurred by or
on behalf of Seller incident to the exploration, development or operation of the Assets which could be the basis for the
existence or the filing of any claims against the Assets or any part thereof.

(k) To the best of Seller's knowledge, the Assets have been operated in compliance in all material respects with all valid
laws, rules, regulations, ordinances and orders of governmental authorities having jurisdiction (including environmental
laws) and in compliance in all material respects with all permits, approvals, contracts and agreements relating to the Assets.

(l) None of the Assets are subject to any preferential rights to purchase or restrictions on assignment that would be
applicable to the transactions contemplated hereby, or which have not already expired.

(m) To the best of Seller's knowledge, there are no approvals, consents or filings required to be made or obtained to an
assignment or transfer of any of the Assets.

(n) To the best of Seller's knowledge, there are no operations involving any of the Assets to which Seller has become a
non-consenting party.

(o) To the best of Seller's knowledge, except as expressly set forth on Schedule "F", there are no prepayments, advance
payments, take-or-pay payments or similar payments requiring the delivery of gas from the Assets without then or
thereafter receiving payment at current prices.

(p) To the best of Seller's knowledge, all of the Subject Properties have been drilled and completed within the boundaries
of the Subject Lease or within the limits otherwise permitted by contract, pooling or unit agreement, and by law; and all
drilling and completion of the Subject Properties and all development and operations on the Subject Lease have been
conducted in all material respects in compliance with all applicable laws, ordinances, rules, regulations and permits, and
judgments, orders and decrees of any court or governmental body or agency, except failures which individually and in the
aggregate would not have a material adverse effect on the use, value or operation of the Assets.

(q) To the best of Seller's knowledge, except as expressly set forth in Schedule "G", all proceeds from the sale of
hydrocarbons produced from the Subject Properties are currently being paid to Seller and no portion of such proceeds is
currently being held in suspense by any Buyer thereof or any other party by whom proceeds are paid except for immaterial
amounts.

(r) On the Closing Date, no mortgage lien, security interest or similar lien created by Seller will exist with respect to the
Assets.

(s) To the best of Seller's knowledge, the Subject Lease is burdened by no royalty, overriding royalty interests, production
payments or other burdens on production in excess of those shown on Exhibit A.  Otherwise, the Assignment shall be made
without warranty of title, either express or implied, except for acts by, through and under Seller, and shall be subject to all
validly existing burdens on production which pertain to the Subject Lease.

(t) SELLER DOES NOT WARRANT, EITHER EXPRESSLY OR IMPLIEDLY, THE RESERVOIR PERFORMANCE
OR THE MERCHANTABILITY, SUITABILITY, CONDITION OR FITNESS FOR ANY PARTICULAR PURPOSE OR
USE OF ANY OF THE AFORESAID LEASEHOLD EQUIPMENT, MATERIAL OR PERSONAL PROPERTY, ANY
SUCH WARRANTY BEING EXPRESSLY DENIED.  BUYER, BY ACCEPTANCE OF THIS AGREEMENT,
HEREBY AGREES TO ACCEPT THE SAME "WHERE IS, AS IS" AND WITH ALL FAULTS OR DEFECTS, IF ANY,
IN THEIR PRESENT CONDITION AND STATE OF REPAIR.  BUYER EXPRESSLY WAIVES ALL OF THE
EXPRESS AND IMPLIED WARRANTIES PROVIDED BY NEW MEXICO LAW, INCLUDING PARTICULARLY
(BUT NOT LIMITED TO) (1) THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (2) THE
WARRANTY AGAINST REDHIBITORY VICES AND (3) ANY RIGHT TO CLAIM RESCISSION OR REDUCTION
IN THE PURCHASE PRICE ON ACCOUNT OF ANY DEFECT OR CONDITION OF THE AFORESAID
LEASEHOLD EQUIPMENT, MATERIAL OR PERSONAL PROPERTY WHICH MAY NOW OR HEREAFTER
EXIST, WHETHER KNOWN OR UNKNOWN ON THIS DATE.

7. Buyer's Representations AND WARRANTIES

Buyer represents and warrants to and with Seller that:

(a) Buyer is a corporation duly organized, validly existing, and in good standing under the laws of the State of Nevada and
Buyer is duly qualified to carry on its business in the state in which the Assets lie.

(b) Buyer has all requisite power and authority to carry on its business as presently conducted; to enter into this Agreement;
to purchase the Assets on the terms described in this Agreement and to perform its obligations hereunder.

(c) This Agreement and the consummation of the transactions contemplated by this Agreement will not violate, constitute a
default under, or be in conflict with, (i) any provision of Buyer's Articles of Incorporation or Bylaws, (ii) any material
contract, agreement or instrument to which Buyer is a party or by which Buyer is bound, or (iii) any judgment, decree,
order, statute, rule or regulation applicable to Buyer.

(d) The execution, delivery and performance of this Agreement and the transactions contemplated by this Agreement have
been duly and validly authorized by all necessary corporate action on the part of Buyer.  This Agreement has been duly
executed and delivered on behalf of Buyer and at Closing all documents and instruments required hereunder to be executed
and delivered by Buyer shall have been duly executed and delivered.  This Agreement and such documents and instruments
will constitute legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their terms,
subject, however, to applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the rights
and remedies of creditors, and to general principles of equity.

(e) Buyer is now, and hereafter shall continue to be, qualified to own State oil, gas and mineral leases in the State of New
Mexico and with all other applicable regulatory bodies.

(f) Buyer is acquiring the Assets for Buyer's own account or investment, and not with a view to, or for resale in connection
with, any distribution thereof within the meaning of the Securities Act of 1933, and shall not resell any or all of the Assets
except in compliance with all applicable securities laws.

8. Obligations of Seller and Buyer

(a) For purposes of determining adjustments to the Purchase Price under Article 1(d) hereof, Buyer agrees to accept the gas
sales and oil and condensate sales meter readings taken in good faith by Seller as of 7:00 o'clock A.M. on the Effective
Date hereof.

(b) At the Closing, Buyer shall expressly assume and agree to be bound by the Contracts insofar as they relate to periods of
time from and after the Effective Date and will protect, indemnify and hold Seller harmless from and against any claims or
demands arising out of the failure of Buyer to do so.

(c) Except as provided for in Articles 8(d), and 9, Seller shall retain all risk and liability of whatsoever nature connected
with operations conducted on the Assets prior to the Closing Date and agrees to protect, indemnify, defend and hold Buyer
free and harmless from all liabilities, penalties, claims, causes of action, demands, lawsuits and expenses associated with
the operations prior to the Closing Date.  Buyer shall assume all risk and liability of whatsoever nature connected with
operations conducted on the Assets from and after the Closing Date, and agrees to protect, indemnify, defend and hold
Seller free and harmless from all liabilities, penalties, claims, causes of action, demands, lawsuits and expenses associated
with the Contracts and the operations from and after the Closing Date.

(d) Except as provided for in Article 6 and 9(b) hereof, Buyer assumes full responsibility for, and agrees to protect,
indemnify, defend and hold Seller, its agents, directors, officers, shareholders and employees, free and harmless from and
against all loss, liability, claims, fines, expenses, costs (including attorney's fees and expenses) and causes of action caused
by or arising out of any federal, state or local laws, rules, orders and regulations applicable to any waste material or
hazardous substances on or included with the Assets or the presence, disposal, release or threatened release of all waste
material or hazardous substance from the Assets into the atmosphere or into or upon land or any water course or body of
water, including ground water (collectively, "Environmental Liabilities"), whether or not attributable to Seller's activities or
the activities of Seller's agents, directors, officers, shareholders and employees, or to the activities of third parties
(regardless of whether or not Seller was or is aware of such activities) prior to, during or after the period of Seller's
ownership of the Assets. This indemnification and assumption shall apply to liability for voluntary environmental response
actions undertaken pursuant either to the Comprehensive Environmental Response, Compensation, and Liability Act of
1980 (42 U.S.C.A. ss 9601, et seq.), as from time to time amended or revised, or to any other federal, state or local law.

(e) Buyer agrees to comply with all laws and governmental regulations with respect to abandonment of wells and/or
abandonment of the leasehold property including, where applicable, the plugging of wells, the compliance with law or rules
regarding inactive or unplugged wells, including bonding requirements and restoration as specified in the Subject Lease.
Buyer agrees to protect, defend, indemnify and hold Seller, its agents, directors, officers, shareholders and employees, free
and harmless from and against any and all costs, expenses, claims, demands and causes of action of every kind and
character arising out of, incident to, or in connection with the abandonment of wells and/or abandonment of and proper
disposition of any leasehold property, including, without limitation, the leases, any structures, materials, land, wells,
casing, leasehold equipment and other personal property, plugging requirements or exceptions thereto, including bonding
requirements, regardless of whether the liability therefore is based upon some alleged act or omission of Seller, or of the
Buyer, or of some other party.

(f) All accounts payable and other costs and expenses with respect to the Seller's interest in the Assets which relate to the
period prior to the Effective Date shall be the obligation of and be paid by Seller and those which relate to the period
commencing with the Effective Date shall be the obligation of and be paid by Buyer.

(g) All prepaid utility charges applicable to periods following the Effective Date relating to the Assets shall be prorated as
of the Effective Date.

(h) Seller shall maintain responsibility and liability for the management, administration and disbursement of suspended
funds (including interest accrued thereon, if any) attributable to the interests of third parties and accrued by Seller, for any
reason, pursuant to Seller's disbursement of proceeds from the sale of production from the property or the Subject Lease
and/or units of which the Assets are a part, to the extent such funds are attributable to production sold prior to the Closing
Date (collectively the "Suspended Funds").

Seller shall provide Buyer a listing of all Suspended Funds, setting forth the name, address and tax identification number (if
known), of each interest owner, the decimal of interest suspended, the amount suspended for each interest owner, the
reason the funds are in suspense, the date the interest was first suspended and the actions, if any, taken by Seller with
respect to such funds.  Seller shall deliver to Buyer, as soon after the Closing Date as practicable, a copy of Seller's records
and files that apply to or are related to the Suspended Funds transferred or assigned to Buyer.

(i) If monies are received by either party hereto which, under the terms of this Article, belong to the other party, the same
shall immediately be paid over to the proper party. If an invoice or other evidence of an obligation is received which is
applicable to periods both prior to and after the Effective Date and is, thus, under the terms of the preceding paragraphs,
partially the obligation of Seller and partially the obligation of Buyer, then the parties shall consult with each other and
each shall promptly pay its portion of such obligation to the obligee.

(j) Seller will pay all ad valorem, property taxes and other taxes assessed on, based on, or attributable to production and
other equipment that occurred prior to the Effective Date.  Buyer will pay all taxes assessed on, based on, or attributable to
production that occurred after the Effective Date.  It is agreed that whichever party receives said tax statements shall pay
such taxes prior to delinquency and the other party hereto agrees to reimburse the paying party its pro rata share thereof
promptly upon receipt of an invoice accompanied by evidence of such payment.  It is further agreed that, should Seller pay
the taxes, then Buyer also shall reimburse Seller for any portion of the aforementioned taxes that are assessable against
other working interest and non-working interest owners and Buyer shall recoup from them accordingly.  Buyer shall pay all
applicable state, parish, municipality or government sales or use taxes on the leasehold, equipment, material or personal
property located thereon for periods subsequent to the Effective Date.

(k) Seller and Buyer shall each bear their own costs and expenses, including, but not limited to, attorney's fees incurred in
connection with the transactions contemplated in this Agreement.

(l) The sale of the Assets shall be subject to, and Buyer shall assume, pay for and perform, the duties, liabilities and
obligations relating to the Assets, including, but not limited to, all applicable and validly recorded and unrecorded
agreements, contracts and instruments (including, but not limited to, royalties, overriding royalty interests, production
payments, net profits interest, carried working interest or similar burdens), from and after the Effective Date.

9. Environmental Conditions

(a) The Assets which have been identified herein and are the subject of this Agreement have been utilized by Seller and its
predecessors-in-title for the purpose of exploration, development and production of oil and gas.  Information, to the best of
Seller's knowledge, regarding any substantial quantity of crude oil and produced water which may have been spilled or
disposed of onsite and the locations thereof, including pit closures, burial, land farming, land spreading and underground
injection, will be made available to Buyer as soon as practicable after the execution of this Agreement, but in no event less
than thirty (30) days after the Closing Date.  Buyer acknowledges that there may have been spills of these materials in the
past onto the Assets described herein.  In addition, some oil field production equipment may contain asbestos and/or
Naturally Occurring Radioactive Material ("NORM").  In this regard, Buyer expressly understands that NORM may affix
or attach itself to the inside of wells, materials and equipment as scale, or in other forms, and that said wells, material and
equipment located on the property described herein may contain NORM and that NORM-containing material may be
buried or otherwise disposed of on the Assets.  Buyer also expressly understands that special procedures may be required
for the removal and disposal of asbestos and NORM from the equipment and Assets where it may be found and Buyer
agrees to assume all liability for such asbestos and NORM and for use of appropriate procedures and activities required to
handle and dispose of same.

(b) Promptly after execution of this Agreement by both parties, Buyer shall have the right, at its own cost, risk and expense,
to conduct or have conducted an environmental assessment of the Assets.  Seller will provide Buyer (or its contractor) as
may be requested with reasonable access to the Assets operated by Seller in order to conduct the environmental assessment.
Buyer shall release, protect, indemnify, defend and hold Seller, its agents, directors, officers, shareholders and employees,
free and harmless against any liability or damage to persons or property arising out of such environmental assessment.
Such indemnity shall also apply regardless of whether the liability or damage arises in whole or in part from the negligence
of Seller.  Buyer shall advise Seller of any material adverse environmental conditions of the Assets which it finds
unacceptable ("Unacceptable Environmental Conditions") and provide evidence thereof on or before Closing.  For the
purpose of this paragraph, such conditions shall be "material" only if they will cost in excess of $250,000 to cure or
remedy, and were not specifically disclosed on or before the execution of this Agreement.  Within thirty (30) days after
receipt of such notice, Seller may either (1) remedy or agree to remedy such Unacceptable Environmental Conditions
within a period of time not to exceed 90 days following the receipt of Unacceptable Environmental Conditions Notice; (2)
negotiate with Buyer in a good faith effort to agree upon an adjustment to the Purchase Price which adjustment shall reflect
Buyer's cost to remedy such conditions ("Buyer's Remediation Costs").

SUBJECT TO THE FOREGOING AND EXCEPT AS EXPRESSLY PROVIDED FOR IN THIS AGREEMENT, BUYER
UNDERSTANDS AND AGREES THAT THIS SALE IS MADE ON AN "WHERE IS, AS IS" BASIS AND BUYER
RELEASES SELLER FROM ANY LIABILITY WITH RESPECT THERETO WHETHER OR NOT CAUSED BY OR
ATTRIBUTABLE TO SELLER'S NEGLIGENCE EXCEPT AS OTHERWISE EXPRESSLY AGREED UPON IN
WRITING BY SELLER AS PROVIDED HEREIN.

(c) From and after the Closing Date, Buyer shall dispose of or discharge any waste from the Assets (including, but not
limited to, produced water, drilling fluids and other associated wastes) in accordance with applicable federal, state or local
regulations. When and if any lease, an interest in which has been conveyed and assigned hereunder, is terminated, Buyer
shall take at its sole expense whatever remedial action on the Assets is necessary to meet any federal, state or local
requirements directed at protecting human health and the environment in effect at that time.

(d) Except as provided for in Article 9(b) hereof, Buyer, its successors and assigns, hereby agree to protect, indemnify,
defend and hold Seller, its agents, directors, officers, shareholders and employees, free and harmless from and against all
claims, demands and causes of action, including any civil fines, penalties, costs of clean-up or plugging liabilities for any
and all wells, brought by any and all persons, including (without limitation) Buyer's agents, directors, officers, shareholders
and employees and also including (without limitation) any private citizens, persons, organizations and any agency, branch
or representative of federal, state or local government, on account of any personal injury or death or damage, destruction or
loss of property, contamination of natural resources (including soil, surface water or ground water) resulting from or arising
out of any liability caused by or connected with the presence, disposal or release of any material of any kind, including,
without limitation, asbestos and/or NORM, in, under or on the Assets at the time the Assets are conveyed and assigned to
Buyer, or thereafter caused by acts of Buyer, its agents, directors, officers, shareholders and employees, with regard to its
use of the described Assets subsequent to the conveyance and assignment of the described Assets pursuant to this
Agreement without regard to whether such liability, injury, death, damage, destruction, loss or contamination is caused in
whole or in part by any claimed negligence, active or passive, on the part of Seller or other indemnified party.  This
indemnification shall be in addition to any other indemnity provisions contained in this Agreement.

10. CONDITIONS OF CLOSING BY BUYER: The obligation of Buyer to close is subject to the satisfaction of the
following conditions:

(a) Buyer shall have had reasonable access during normal business hours to all data and records obligated to be provided
Buyer in Section 3 hereof.

(b) That all representations and warranties of Seller contained in this Agreement shall be true and correct in all material
respects at and as of Closing as if such representations and warranties were made at and as of Closing;

(c) Buyer shall have received Seller's assurance that (i) the consummation of the transaction contemplated hereby will not
violate the provisions of Seller's corporate charter and by-laws or any agreement, instrument, order, judgment or law by
which it is bound, and (ii) all title documents delivered hereunder are validly executed on behalf of Seller.

(d) Seller shall have obtained and delivered to Buyer (i) all prerequisite waivers of preferential rights of purchase, and (ii)
all necessary consents for transfer of the Interests, except those which by their nature cannot be requested or obtained until
after Closing, or Buyer and Seller shall have adjusted the sale price in accordance with the provisions of Section 2 and 5.

(e) That all representations and warranties of Seller contained in this Agreement shall   be true and correct in all material
respects at and as of Closing as if such representations and warranties were made at and as of Closing;

(f) Seller shall have performed and satisfied in all material respects all covenants and agreements required by this
Agreement to be performed or satisfied by Buyer at or prior to Closing; and

(g) at the Closing Date, no suit, action or other proceeding shall be pending or threatened in which it is sought to restrain or
prohibit the performance of or to obtain damages or other relief in connection with this Agreement or the transactions
contemplated hereby.

(h) Since the date of this Agreement, there shall have been no material adverse change in the condition of the Assets,
except depreciation of personal property through ordinary wear and tear, depletion resulting from production and
economic, political or legal changes affecting the oil and gas industry in general; provided, however, that no change in the
conditions of the Assets shall be deemed material unless the aggregate value thereof exceeds five (5%) of the Purchase
Price

11. CONDITIONS OF CLOSING BY SELLER: The obligation of Seller to close is subject to:

(a) Seller receiving evidence satisfactory to Seller that Buyer has all requisite corporate, partnership or other power and
authority to purchase the Interests on the terms described in this Agreement and to perform its other obligations hereunder
and that all corporate, partnership and/or other prerequisites of whatsoever nature have been fulfilled.

(a) That Seller shall have performed and satisfied in all material respects all covenants and agreements required by this
Agreement to be performed or satisfied by Seller at or prior to Closing;

(b) At the Closing Date, no suit, action or other proceeding shall be pending or threatened in which it is sought to restrain
or prohibit the performance of or to obtain damages or other relief in connection with this Agreement or the transactions
contemplated hereby.

12. CLOSING: The Closing shall be held on or before Friday, June 28, 2002, at 10:00 A.M., at the offices of Seller or at
such other place as Seller and Buyer may mutually agree in writing. At Closing the following will occur:

(a) Seller and Buyer shall execute, acknowledge and deliver an Assignment and Bill of Sale substantially in the form of
Exhibit "D" attached hereto.

(b) Buyer shall deliver to Seller by either wire transfer or certified funds the remaining balance of the total sale price as
adjusted hereunder, subject to further adjustment after Closing as provided for herein, and shall cause to be delivered to
Seller a certificate representing the shares of Buyer required to be transferred to Seller pursuant to Article 2(b) above.

(c) Seller and Buyer shall execute any necessary forms required by governmental agencies for the transfer of the Interests
and Buyer shall file same immediately following Closing.

(d) Seller shall (subject to the terms of any applicable agreements and to the other provisions hereof) deliver to Buyer
exclusive possession of the Interests, effective as of the Effective Time.

(e) All books, records and files in the possession of Seller pertaining to the Interests, including, without limitation, all well
files, correspondence, geological and engineering information, shall be made available for delivery to Buyer at Seller's
offices where currently maintained, within five (5) days after the Closing. Seller shall have the right to retain copies of any
or all of such books, records and files and to retain canceled checks and general ledger, purchasing and other general
accounting records of Seller. Seller reserves the right to later examine the records and information delivered to Buyer
pursuant to this paragraph (e) to the extent such examination is necessary for any relevant business purpose. All
information and data shall be furnished as a matter of convenience only to Buyer and Buyer's reliance on same shall be at
Buyer's sole risk.

13. RESERVATIONS AND EXCEPTIONS: Sale and purchase of the Interests is made subject to all reservations,
exceptions, limitations, contracts and other burdens or instruments which are of record or of which Buyer has actual or
constructive notice, including any matter included or referenced in the materials made available by Seller to Buyer.

14. CLOSING ADJUSTMENTS: All ad valorem taxes, real property taxes and similar obligations ("Property Taxes") for
the year 2002 shall be prorated and paid by Seller (5/12) and Buyer (7/12).

All proceeds (including proceeds held in suspense or escrow) from the sale of production actually sold and delivered by
Seller prior to the Effective Time and attributable to the Interests shall belong to Seller and all proceeds from the sale of
production actually sold and delivered after the Effective Time attributable to the Interests shall belong to Buyer. In
addition, all oil, condensate or liquid hydrocarbons (hereinafter in this paragraph called "oil") in storage above the pipeline
connection shall be gauged and all gas meter charts shall be replaced at the Effective Time.  Buyer shall pay Seller for such
oil at the highest posted field price prevailing at the Effective Time for oil of like grade and gravity for the particular field.

Except as otherwise specifically provided in this Agreement, all costs, expenses and obligations relating to the Interests
which accrue prior to the Effective Time shall be paid and discharged by Seller; and all costs, expenses and obligations
relating to the Interests which accrue after the Effective Time shall be paid and discharged by Buyer.

15. POST CLOSING ACCOUNTING:

(a) As soon as practicable after the Closing, Seller shall prepare and deliver to Buyer, in accordance with this Agreement
and generally accepted accounting principles, a statement (the "Intermediate Settlement Statement") setting forth each
adjustment or payment that was not finally determined as of the Closing and showing the calculation of such adjustments to
the sale price including adjustments related to title defects of Article 5, Buyer Remediation costs of Articles 9(b).  As soon
as practicable after receipt of the Intermediate Settlement Statement, Buyer shall deliver to Seller a written report
containing any changes that Buyer proposes be made to the Intermediate Settlement Statement. The parties undertake to
agree with respect to the Intermediate Settlement Statement no later than 180 days after closing, such agreement
constituting and to be embodied in the "Final Settlement Statement" and to establish the "Final Sale Price", and the date
upon which the Final Sale Price is established to be the "Final Settlement Date'.  However, the "Final Sale Price" shall not
include any additional consideration which may be earned upon performance level of the assets reaching stated targets per
Exhibit "C", until such time as they are achieved or agreement is reached that they shall not be achieved.  Such additional
payments are considered additional consideration for the purchase of these assets.  In the event Buyer and Seller are unable
to mutually agree upon the amount of the Final Settlement Statement, an audit shall be conducted by a mutually agreed
upon accounting firm. Buyer and Seller agree to be bound by the findings of such audit, insofar as the Final Settlement
Statement amount is concerned, and each shall bear one half of all expenses associated with such audit. In the event that (i)
the Final Sale Price is more than the amount paid at Closing, Buyer shall pay to Seller the amount of such difference, or (ii)
the Final Sale Price is less than the amount paid at Closing, Seller shall pay Buyer in immediately available funds the
amount of such difference within 10 days of noticification.  Seller shall be responsible for the settlement of all joint billing
audits which relate to accounting periods prior to the Effective Time. Buyer shall be responsible for the settlement of all
joint billing audits which relate to accounting periods after the Effective Time. Any credits received by Buyer after the
Effective Time Attributable to expenses paid prior to the Effective Time shall be promptly reimbursed to Seller by Buyer.

(b) Any additional consideration earned pursuant to 2(c) connected with production levels achieved shall be considered an
upward post closing adjustment regardless of when earned.

16. TAXES: The sale price provided for hereunder excludes any sales taxes or other taxes in connection with the sale of
property pursuant to this Agreement because the parties believe that this sale is exempt from sales tax. If a determination is
ever made that a sales tax or other transfer tax applies, Buyer shall be liable for such tax as well as any applicable
conveyance, transfer and recording fees, and real estate transfer stamps or taxes imposed on any transfer of property
pursuant to this Agreement. Buyer shall defend and hold Seller harmless with respect to the payment of all such taxes, if
any, including any interest or penalties assessed thereon.

All taxes (other than ad valorem and income taxes) which are imposed on or with respect to the production of oil, natural
gas or other hydrocarbons or minerals or equipment or the receipt of proceeds therefrom (including but not limited to
severance, production, excise and windfall profit taxes) shall be apportioned between the parties based upon the respective
shares of production taken by the parties. Payment or withholding of all such taxes which have accrued prior to the
Effective Time and filing of all statements, returns and documents pertinent thereto shall be the responsibility of Seller.
Payment or withholding of all such taxes which have accrued from and after the Effective Time and the filing of all
statements, returns and documents incident thereto shall be the responsibility of Buyer.

17. EMPLOYMENT CONTRACT: As additional consideration for the transfer of the Interests herein, Buyer agrees to
enter into an Employment Contract with Donnie Hill.  Such Employment Agreement shall be in substantially the same
form as the Employment Agreement attached hereto as Exhibit "E".

18. FURTHER OPERATION OF SELLER-OPERATED INTERESTS: Seller shall, as to the Interests it now operates,
continue to operate the same until the Effective Time, when such operation shall be turned over to, and become the
responsibility of Buyer. In the event Closing occurs after the Effective Time, however, Seller shall, unless Buyer and Seller
otherwise agree, continue the physical operation of such Interests until Closing: such operation from and after the Effective
Time shall be conducted by Seller for and on behalf of Buyer; and for any such services performed by Seller from and after
the Effective Time, Buyer shall pay Seller for all reasonable and necessary expenses incurred by Seller in such operation,
protection or maintenance of the Interests. Such expenses may be recovered by Seller as part of the closing or post-closing
adjustments, as appropriate.

In all of its operations after full execution of this Agreement, Seller shall exercise the same standard of care as an ordinary
prudent operator under the same or similar circumstances and shall notify Buyer of any material adverse change in the
productive capability of any well Included in the Interests.

19. BROKER'S FEE: Seller represents and warrants to Buyer that Seller has incurred no liability, contingent or otherwise,
for broker's or finder's fees in respect of this Agreement or the transactions contemplated hereby for which Buyer shall have
any responsibility whatsoever; and Buyer represents and warrants to Seller that Buyer has incurred no fees in respect of this
Agreement or the transactions contemplated hereby for which Seller shall have any responsibility whatsoever.

20. NOTICES: All communications required or permitted under this Agreement shall be in writing and any communication
or delivery hereunder shall be deemed to have been fully made if actually delivered, or if mailed by registered or certified
mail, postage prepaid, to the address as set forth below:

SELLER

BC&D Oil & Gas Corporation

2225 NW County Road

Hobbs, NM 88240

Attn: Donnie Hill

BUYER

Rocky Mountain Energy Corporation

333 N. Sam Houston Parkway East, Suite 910

Houston, Texas 77060

Attn:  John N. Ehrman

21. FURTHER ASSURANCE: After Closing each of the parties shall execute, acknowledge and deliver to the other such
further instruments, and take such other actions as may be reasonably necessary to carry out the provisions of this
Agreement. However, Buyer shall assume all responsibility for notifying the Buyer of oil and gas production from the
Interests, and such other designated persons who may be responsible for disbursing payments for the purchase of such
production, of the change of ownership of the Interests. Buyer shall take all actions necessary to effectuate the transfer of
such payments to Buyer as of the Effective Time. Seller shall have no responsibility or liability for the proper distribution
of proceeds from and after the Effective Time.

22. PRESS RELEASE: There shall be no press release or public communication concerning this purchase and sale by
either party except with the written consent of the party not originating said release or communication, with the exception
being those reports reasonably required by applicable state or federal law or regulations.

23. ENTIRE AGREEMENT: This Instrument states the entire agreement between the parties and may be supplemented,
altered, amended, modified or revoked by writing only, signed by both parties.

24. SURVIVAL: The representations, warranties and agreements contained in this Purchase and Sales Agreement and in
any certificate or other instrument delivered by or on behalf of either party pursuant to this Purchase and Sales Agreement
shall survive the Closing and shall be unaffected by any investigation made by the other party.

25. HEADINGS: The headings are for guidance only and shall have no significance in the interpretations of this
Agreement.

26. GOVERNING LAW: THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO
SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW MEXICO THE PARTIES AGREE THAT ANY LITIGATION RELATING DIRECTLY OR INDIRECTLY TO
THIS AGREEMENT MUST BE BROUGHT BEFORE AND DETERMINED BY A COURT OF COMPETENT
JURISDICTION WITHIN THE STATE OF NEW MEXICO.

SELLER:

BC&D OIL AND GAS CORPORATION

By:

Donnie Hill, President

BUYER:

ROCKY MOUNTAIN ENERGY CORPORATION

By:                                  John N. Ehrman, President

STATE OF NEW MEXICO

COUNTY OF LEA

BEFORE ME, the undersigned authority, on this day personally appeared Donnie Hill,

known to me to be the person whose name is subscribed to in the foregoing instrument, and

known to me to the President of BC&D Oil and Gas Corporation, a New Mexico corporation,

and acknowledged to me that he executed said instrument for the purposes and consideration

therein express, and as the act of said corporation.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this _______ day of June 2002.

Notary Public, State of New Mexico

STATE OF TEXAS

COUNTY OF HARRIS

BEFORE ME, the undersigned authority, on this day personally appeared John N. Ehrman, known to me to be the person
whose name is subscribed to in the foregoing instrument, and known to me to the President of Rocky Mountain Energy
Corporation, a Nevada corporation, and acknowledged to me that he executed said instrument for the purposes and
consideration therein express, and as the act of said corporation.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this _______ day of June 2002.

Notary Public, State of Texas